USA, what about to run out of money?

The risk that the US goes into receivership has increased during the last weeks of July. In fact, its short has increased exponentially.

In parallel, the US Budget Office (CBO, for its acronym in English) warning that by the end of the year, the US Treasury could run out of money if Congress does not raise the debt ceiling.

The value of Treasury bonds or so-called 't-bills' October-a form of safe investment guaranteed by the state has been drastically reduced during the third week of July and profitability has increased.

At the same time, the US market is beginning to see that closing the US government for two weeks is a possible scenario, which would result in the Trump Administration has no money to pay all utilities.

According to the CBO , if the ceiling of expenditure remains unchanged, the US Treasury will run out of funds in mid-October 2017, which will lead to delays in payments of government programs and activities, debt default, or both.

"Projections of the Budget Office estimate that if the debt ceiling is not raised (...) it is likely that the Treasury will run out of money (...). The CBO estimates that the deficit this year will be 693,000 million dollars, 134,000 million more than previously thought in January. "

According to the state agency, the US Treasury has been applied so far and since 2015 "extraordinary measures" to obtain loans for a limited period.

To avoid the situation, the CBO suggests that the Government implement six measures, most of them based on suspending the issuance of bonds.

During the month of July, the US Treasury Secretary, Steven Mnuchin, urged Congress to raise the debt ceiling before the August holidays and recommended not to delay action until the last moment. He also warned that the greater are the possibilities of increasing the limit-and uncertainty take over the economy, the more likely a negative reaction from financial markets.

Read more:  Inequality and debt threaten US hegemony

The debt crisis in the US is a recurring theme every year and a danger to the country. Unless the US president, Donald Trump, and the US Congress join forces to counter the growth of public debt,  the future of Washington will be difficult .